How did Autodesk's subscription revenue perform in this quarter?

Subscription revenue was the primary driver of growth, increasing by 19% year-over-year to $1.73 billion for the three months ended October 31, 2025, and by 17% to $4.92 billion for the nine months ended October 31, 2025. This growth was attributed to renewals from the existing subscriber base and increased revenue from Cloud Service offerings and Enterprise Business Agreements (EBAs).

What is the company's outlook on its Remaining Performance Obligations (RPO)?

Autodesk's RPO stood at $7.36 billion as of October 31, 2025, an increase of 6% from the prior fiscal year-end. Of this amount, $4.83 billion is expected to be recognized as revenue in the next 12 months, indicating strong visibility into future revenue.

How is the company managing its operating expenses?

Total operating expenses increased by 13% year-over-year for the third quarter, largely due to an increase in marketing and sales expenses related to the new transaction model and increased R&D for cloud and AI investments. However, the company is focused on operational leverage, with expected decreases in General and Administrative expenses and savings from its recent restructuring plan.

What is the impact of the new transaction model on revenue and expenses?

The new transaction model, which recognizes Solution Provider commissions as operating expenses rather than contra-revenue, is expected to positively impact calculated revenue growth while being broadly neutral to operating profit and free cash flow dollars. This shift is also expected to result in a calculated negative impact on operating margin. The company noted that sales incentives to Solution Providers in the new model are capitalized as costs to obtain a contract.

ADSK 10-Q Quarterly Report Q3 FY2026 — Revenue, Net Income, EPS

Summary

Autodesk, Inc. (ADSK) reported robust financial performance for the third quarter and the first nine months of fiscal year 2025, demonstrating significant growth in net revenue, driven primarily by its subscription offerings. Total net revenue increased by 18% year-over-year for the quarter and 17% for the nine-month period, reaching $1.85 billion and $5.25 billion, respectively. The company maintained a high percentage of recurring revenue at 97%, underscoring the stability and predictability of its business model. Profitability also saw substantial improvement, with income from operations increasing by 36% for the quarter and 16% for the nine-month period. Diluted earnings per share grew significantly, reflecting strong operational execution. Key financial indicators such as Remaining Performance Obligations (RPO) saw a healthy increase, indicating strong future revenue potential. The company also continued its commitment to returning value to shareholders through substantial share repurchases. Despite a dynamic economic environment, Autodesk's strategic focus on cloud, platform, and AI investments appears to be yielding positive financial results, positioning the company for continued growth.

Financial Highlights

51 data points

Beta

Revenue

$1.85B

0.9% Gross Margin

Net Income

$343.00M

0.2% Net Margin

EPS (Diluted)

$1.60

Total Assets

$11.20B

Cash & Equivalents

$1.99B

Free Cash Flow

$430.00M

Financial Statements

Beta

Revenue	$1.85B
Cost of Revenue	$165.00M
Gross Profit	$1.69B
R&D Expenses	$416.00M
Operating Expenses	$1.22B
Operating Income	$470.00M
Interest Expense	$22.00M
Net Income	$343.00M
EPS (Basic)	$1.61
EPS (Diluted)	$1.60
Shares Outstanding (Basic)	213.00M
Shares Outstanding (Diluted)	215.00M

Key Highlights

1Net revenue grew 18% year-over-year to $1.85 billion for the three months ended October 31, 2025, and 17% to $5.25 billion for the nine months ended October 31, 2025.
2Recurring revenue remained strong, representing 97% of total net revenue for both the three and nine-month periods.
3Income from operations increased by 36% year-over-year to $470 million for the third quarter and 16% to $1.15 billion for the nine-month period.
4Diluted EPS increased to $1.60 for the quarter and $3.76 for the nine months, up from $1.27 and $3.73 respectively in the prior year.
5Remaining Performance Obligations (RPO) increased by 6% to $7.36 billion as of October 31, 2025.
6The company repurchased 1.17 million shares for $358 million during the third quarter and 3 million shares for $1.07 billion for the nine-month period.
7Net revenue retention rate (NR3) was above 110% on a constant currency basis as of October 31, 2025.

Autodesk, Inc. Quarterly Report for Q3 Ended Oct 31, 2025

Summary

Financial Highlights

Key Highlights

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